GTM: Future Revenue Will Depend On AI Demand And Upmarket Execution

Analysts have raised their average price targets on ZoomInfo Technologies by a few dollars to the low to mid teens, citing steady revenue execution, improving tone around upmarket demand, and growing confidence in the company’s AI driven initiatives despite ongoing down market and competitive headwinds.

Analyst Commentary

Street research following ZoomInfo's Q3 results reflects a cautiously constructive stance, with most firms nudging price targets higher into a range around the low to mid teens while retaining mixed ratings. The updates highlight solid execution against tempered expectations, particularly in upmarket accounts, but also underscore that the pace of improvement may not yet justify a full re-rating of the shares.

Bullish Takeaways

• Bullish analysts point to an above average top line beat and steady upmarket traction as evidence that ZoomInfo can sustain modest revenue growth despite macro and competitive pressures.
• Incrementally higher price targets and commentary about becoming more positive on the growth outlook suggest rising conviction that execution on large accounts and cross sell opportunities can support valuation at current levels.
• Improving tone around customer demand, including stability in down market cohorts and better upsell momentum for products like Copilot and Operations, is seen as an early sign that growth could re accelerate if trends continue.
• Some research notes emphasize that AI driven offerings and enhanced data products could become meaningful growth drivers over time, providing optionality for multiple expansion if adoption scales.

Bearish Takeaways

• Bearish analysts argue that, while Q3 was solid, revenue growth in the mid single digits and only modest guidance raises do not yet justify a major valuation re rating, as reflected in cautious ratings despite higher targets.
• Persistent weakness in the down market customer base, slower large customer additions, and mixed upmarket momentum are cited as constraints on a faster growth trajectory and drivers of continued multiple compression risk.
• Goldman and other more skeptical voices highlight that sustained revenue acceleration will likely require broader demand stabilization plus clear, measurable traction from AI offerings like Copilot, which is not yet visible at scale.
• Concerns also center on relative underperformance potential versus front office software peers until unlevered free cash flow growth and margins inflect higher in tandem with revenue, limiting upside in the near term.

What's in the News

• Launched the AI Builder Catalog, a specialized dataset that aggregates verifiable proof of work signals like open source contributions, academic publications, patents, and competition wins to help recruiters identify scarce, high quality AI talent beyond traditional resumes (Key Developments).
• Introduced ZoomInfo Copilot Workspace, an AI powered execution engine that unifies revenue workflows across CRM and GTM tools, using AI agents to research accounts, monitor signals, draft outreach, and surface next best actions for sales and customer success teams (Key Developments).
• Announced a strategic partnership with Markaaz to create an AI powered B2B data solution that combines ZoomInfo sales intelligence with Markaaz credit and risk data, aiming to deliver an end to end master data platform for prospecting, onboarding, verification, and ongoing monitoring (Key Developments).
• Raised full year 2025 GAAP revenue guidance to a range of approximately $1.237 billion to $1.240 billion, reflecting increased confidence in growth versus prior expectations (Key Developments).
• Provided fourth quarter 2025 GAAP revenue guidance of $307 million to $310 million, framing near term expectations for top line performance (Key Developments).

Valuation Changes

• Fair Value Estimate remained unchanged at $12.35 per share, indicating no material revision to intrinsic value assumptions.
• The Discount Rate rose slightly from 9.57 percent to 9.58 percent, reflecting a marginal increase in perceived risk or required return.
• The Revenue Growth Forecast eased fractionally, remaining at 3.86 percent, implying essentially stable top line expectations.
• The Net Profit Margin edged up slightly, holding at 15.24 percent, signaling a negligible change in long-term profitability assumptions.
• The Future P/E Multiple increased marginally, staying at 19.19x, suggesting a nearly unchanged view of the company’s valuation relative to earnings.